Paper Summary:

In this article, the writer discusses that analysts provide the rationale that the UK's industrial deterioration was the result of industrial policies while others are of the opinion that the UK's slow growth was the result of globalization. Although, there is no clear cut answer to this debate, nevertheless the writer presents the thesis that de-industrialization in the UK has been (or has not been) the result of the changing world markets rather than the result of failed industrial policy. In the process the writer sheds light on the causes behind the UK de-industrialisation, the industrial policies adopted after or possibly during the world war, and the world conditions. This paper includes a table and graph.

From the Paper:

"The root of the policy problem perhaps lies in its implementation. In Alberto Ades and Rafael Di Tella's (1997) study the authors indicate how industrial policies can contribute to the lowering performance of industries. Firstly, this could be because when the government issue subsidies to boost manufacturing or certain industries, the resultant over investment experience tend to drive the industry towards liberal spending on investments. Corruption in the form of negative effect on investment starts to take place so that the cost-benefit of such a policy fails to boost the economy.
"Secondly, industrial policies are often based on the selection or "picking" of national champions. The preferences levied on these industries tend to promote one industry while decreasing the investments in others. Meanwhile it has also been noted that free markets do not provide enough competitiveness to firms to compete with other industries within and outside the country. For this reason, the picking of national champions policies tend to decrease investment opportunities say in manufacturing and instead boost services industries."

Sample of Sources Used:

• Ades, Alberto and Tella, Rafael Di 1997, National Champions and Corruption: Some Unpleasant Interventionist Arithmetic, July 1997 Issue Economic Journal
• Cheshire and Hay, 1989, Urban Problems in Western Europe: an Economic Analysis, Hyman.
• Crafts, Nicholas 1996, Deindustrialisation and Economic Growth. Economic Journal, vol. 106, issue 434, pages 172-83.
• Alderson, Arthur S. 1997, Globalization and Deindustrialization: Direct Investment and the Decline of Manufacturing Employment in 17 OECD Nations. Journal of World-Systems Research 3: 1 - 34.
• Walker, Robert & Michael Wiseman, 2003, Making welfare work: UK activation policies under New Labour, International Social Security Review Volume 56 Issue 1 Page 3

Visitors who viewed this Term Paper also liked these:

• Case Study # 139330 : "Water Quality in the UK"
• Research Paper # 93560 : "Child Poverty in the UK"
• Essay # 1428 : "Mergers and Acquisitions in the UK"

APA Citation:

MLA Citation: